Israel Based Otonomo Figures Out How to Turn Information from Cars Into Cash
Connected cars have internet access. This enables companies to record the data that they produce. For car builders and software producers, this begs the question, “How can we make a buck off of a car’s information?”
Isreal based Otonomo thinks they have the answer to gathering and marketing information from connected cars. City planners, retailers and insurance companies will be some of the consumers for the harvested information. Some insurers are already offering cheaper rates for customers willing to have their driving habits monitored through a data tracking app.
Livery car companies can use the information to dispatch vehicles with sufficient gas for the length of the trip. Hedge funds have expressed an interest in the technology as a means to study real estate trends. Information on battery levels could help power companies keep charging stations from getting overwhelmed by those needing a recharge.
Projections are that in the next dozen years the 25 gigabytes of information that connected cars put out hourly will worth $750 billion a year. Naturally, everyone wants to get their fingers in that pie. This puts auto manufacturers in direct competition with software companies.
Daimler began giving Otonomo’s software a try out in 2017. Otonomo is now working on deals for 10 other car companies to test their software. Currently, some two million cars are equipped with Otonomo’s product. That number is projected to more than double over the next year.
Toyota is working on their own system for collecting information from their vehicles’ computers.